The Indian government has prepared a framework to auction power purchase agreements (PPAs) with related coal supply from state-owned coal mining company Coal India Ltd (CIL) and plans to launch a 2,500 MW power supply capacity tender for three years. This short-term PPA auction is expected to help some of the 10 GW power plants, which are currently struggling with the lack of fuel and power contracts. CIL is likely to allocated about 12 Mt/year of coal to power plants. Under the proposed auction scheme, bidders will be informed about the availability of coal supply from CIL mines and subsidiaries and will be invited to submit tariff-based competitive bids based on the available volumes.
In April 2018 a pilot round of the scheme was launched and 1,900 MW of stressed power capacity across seven power plants operated by RKM Powergen, Jhabua Power, MB Power, SKS Power, Jindal India Thermal Power, IL&FS Energy and JP Nigrie was tied up to states at a price of INR 4.24/kWh (US$6c/kWh). A second round of bidding was concluded in April 2018 with a higher tariff of INR 4.41/kWh (US$6.33c/kWh).
Do you want to become an expert on renewable energies auctions?
Discover our very detailed and regularly updated RES auctions database with worldwide coverage and a technical focus backed by academic research.
With our renewable energies auctions service you will be able to monitor auctions at a global level. Its (expanding) scope notably includes all major G20 countries and offers an especially fine tracking on Europe and South America.